How Did Elon Musk Make His Money: Elon Musk is one of the world’s most well-known and divisive technology CEOs. Over the last 30 years, this outspoken entrepreneur has founded a number of companies, including Tesla (TSLA), SpaceX, The Boring Company (which released a flamethrower called Not a Flamethrower in 2018), and Neuralink.
With his involvement in so many ventures, one might wonder how Elon Musk made his money.
Musk’s Tesla stake will make him the world’s second-richest person by the end of 2020. He is only second to Amazon (AMZN) founder Jeff Bezos after the stock gained over 500% and was included in the S&P 500 at an exorbitant price.
It is the most valuable automobile company in the world, leading the electric vehicle race, and in a position to acquire a legacy automaker.
He is a frequent guest on digital media, including Joe Rogan’s podcast and Marques Brownlee’s MKBHD YouTube channel, and each company he leads is known for innovation.
He’s always in the news. Not more so than when he relocated from California to Texas. Here’s how he amassed one of the greatest fortunes in history.
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How Elon Musk Got Started
Musk was born in Pretoria, South Africa, where he claims he was bullied frequently. He moved to Canada and then to the United States, where he settled in Silicon Valley. Musk founded Zip2 in 1995 with his brother Kimbal and another partner, using funds raised from angel investors.
In February 1999, the company was sold to Compaq for $307 million in cash. Musk earned $22 million from the sale of his stake in the company.
He used that money a month later to co-found payment company X.com, which merged with Confinity in 2000. The combined company also owned PayPal, a financial service that it morphed into once it became profitable.
Two years later, eBay purchased PayPal for $1.5 billion in stock, earning Musk $165 million.
How Did Elon Musk Make His Money?
Musk has long been fascinated by space, and he founded SpaceX in 2002 as a way to start a Mars greenhouse. When it launched the first private manned flight in May 2020, the company gained popularity and notoriety.
He joined Tesla in 2003 with the goal of developing a zero-emissions vehicle. By 2017, the company had released the Model 3 and was focusing on lithium-ion batteries and power storage solutions via its expanded gigafactories.
Is Elon Musk A Billionaire?
Elon Musk is more than a billionaire – he’s a centribillionaire. The term was coined in 2020 as a handful (literally five) of people grew their wealth over $100 billion during the coronavirus pandemic. His net worth was over $153 billion in December 2020.
In today’s dollars, John D Rockefeller’s (the country’s first billionaire) net worth of $1.5 billion would be worth only $25 billion. Although, when measured as a percentage of US GDP, Rockefeller’s fortune is worth more than $400 billion.
Elon Musk is not only one of the wealthiest people in history, but his car company Tesla has a larger market capitalization than Toyota (TM), Ford (F), and any other car company in the world. Despite only accounting for a small portion of the revenue.
This is because Musk did more than just invent the wheel; he also invented the fuel and the roads.
How Is Elon Musk So Rich?
Musk is an astute businessman with a keen understanding of technology. This aided his fortune as he transitioned from one business venture to the next. He’s a modern-day Howard Hughes, with an entrepreneurial spirit and a thirst for adventure.
Tesla is what eventually made Musk and the company’s early investors generationally wealthy. It’s because Musk combined Henry Ford’s and Rockefeller’s ingenuity to vertically integrate into a full-service car company.
Tesla generates subscription revenue by expanding its network of EV charging stations and incorporating software into its vehicles.
Electric vehicles are not a new concept, but their implementation over the last decade has proven the concept and has the potential to disrupt an industry that has produced America’s most powerful titans. As a result, Musk is a disruptor on par with past titans such as John D Rockefeller, who once controlled the oil and gasoline production markets.
What Companies Does Elon Musk Own?
Although Tesla is the most profitable company, Musk is also the CEO and Founder of SpaceX and The Boring Company, as well as the Chairman of SolarCity. He co-founded X.com, which later became PayPal (PYPL), Neuralink, OpenAI, and Zip2, which was later acquired by Compaq.
OpenAI is a not-for-profit artificial intelligence research organisation. The company Neuralink creates brain-computer interfaces. SpaceX launched the first private manned space shuttle into orbit and is now focusing on interstellar exploration. The Boring Company is a company that builds infrastructure and tunnels (do you finally get it – Boring into the ground?).
Each frequently collaborates with the other, and he even developed the Hyperloop as an open-source concept that his company could build. If only this visionary had known not to name his son X A-12.